Why developing economies, have refused to condemn Russia?
The Russia-Ukraine conflict manipulated all news. While Russian troops almost sieging Kyiv, it is still under the control of Ukrainian armies. Peace talk is on the table, but it sounds still both sides are not much serious about getting to the specific point. For now, Russians trying to have more control on the ground and make the Ukrainians accept their terms, while Ukrainian also trying to prove that they are not so submissive and trying to increase their bargaining power.
On the financial markets front, the Russian Stock market was closed to avoid large capital outflows. At the same time, the Russian economy is already showing signs of deteriorating after the biggest ever sanctions that any time in history any developed economy has faced. Anyway, Moscow Stock Exchange is slowly and step-by-step trying to reopen, since Monday this week.
Due to sanctions, Russia cannot access its foreign exchange reserves denominated in US dollars, and that was the reason to hear on Wednesday, that President Putin asked the central bank to find a way how they can sell the Oil and Gas in Russian Ruble instead of US dollar or even Euro to countries that he called them 'unfriendly countries'. And this is where exactly comes the question, is Russia now leading the financial markets' direction? Or the economy will force Russia and President Putin to short some of his wishes.
Increasing tensions and fears in Ukraine, increasing the energy price at the moment, and it will directly end with higher inflation all around the globe. And as all of us know, inflation is the main concern at the moment in the financial markets. The global economy was just getting rid of one of the biggest crises ever, and suddenly we were faced with the current conflict. In the current situation, while other economies putting more pressure on the Russian economy with new sanctions every day, Russian also can affect the global economy by increasing Oil, Gas, and other commodities. On top of that, we should not forget that this war is taking two of the world's top wheat suppliers out of the market.
In short, with increasing inflation and Energy price, we may face the food price crisis, especially in developing economies. If we check the international reactions to this situation, we can see that China, India, Brazil, Turkey, and many other developing economies have refused to condemn Russia. So now, again we can ask this question once again, is that just western countries destroying the Russian Economy to punish it for invading Ukraine or it is Russia that with the determination of the price of energy and food, will be able to get the points they want in Ukraine?
Checking the Gas and Oil chart in the Daily time frames, as you can see in the bellow charts (Respectively Gas and Oil Daily Chart), shows the real impact of these conflicts on prices.
